By Haywood S.B. No. 1746
77R37 QMS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting computers and computer repairs from the sales
1-3 tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 151, Tax Code, is amended by adding
1-6 Section 151.355 to read as follows:
1-7 Sec. 151.355. COMPUTERS. A computer or a component of a
1-8 computer is exempted from the taxes imposed by this chapter.
1-9 SECTION 2. Section 151.0101(a), Tax Code, as amended by
1-10 Chapters 394 and 405, Acts of the 76th Legislature, Regular
1-11 Session, 1999, is amended to read as follows:
1-12 (a) "Taxable services" means:
1-13 (1) amusement services;
1-14 (2) cable television services;
1-15 (3) personal services;
1-16 (4) motor vehicle parking and storage services;
1-17 (5) the repair, remodeling, maintenance, and
1-18 restoration of tangible personal property, except:
1-19 (A) aircraft;
1-20 (B) a ship, boat, or other vessel, other than:
1-21 (i) a taxable boat or motor as defined by
1-22 Section 160.001;
1-23 (ii) a sports fishing boat; or
1-24 (iii) any other vessel used for pleasure;
2-1 (C) the repair, maintenance, and restoration of
2-2 a motor vehicle; [and]
2-3 (D) the repair, maintenance, creation, and
2-4 restoration of a computer program, including its development and
2-5 modification, not sold by the person performing the repair,
2-6 maintenance, creation, or restoration service; and
2-7 (E) a computer or a component of a computer;
2-8 (6) telecommunications services;
2-9 (7) credit reporting services;
2-10 (8) debt collection services;
2-11 (9) insurance services;
2-12 (10) information services;
2-13 (11) real property services;
2-14 (12) data processing services;
2-15 (13) real property repair and remodeling;
2-16 (14) security services;
2-17 (15) telephone answering services; [and]
2-18 (16) Internet access service; and [.]
2-19 (17) [(16)] a sale by a transmission and distribution
2-20 utility, as defined in Section 31.002, Utilities Code, of
2-21 transmission or delivery of service directly to an electricity
2-22 end-use customer whose consumption of electricity is subject to
2-23 taxation under this chapter.
2-24 SECTION 3. (a) This Act takes effect on the first day of the
2-25 first calendar quarter beginning on or after the date that it may
2-26 take effect under Section 39, Article III, Texas Constitution.
2-27 (b) The change in law made by this Act does not affect taxes
3-1 imposed before the effective date of this Act, and the law in
3-2 effect before the effective date of this Act is continued in effect
3-3 for purposes of the liability for and collection of those taxes.